Contemporary Hospitality Industry: PESTEL and SWOT Analysis

Contemporay
Hospitality
Industry
(Task 3 & Task 4)

Table of Content
 Introduction
 PESTEL Analysis of hospitality industry
 SWOT analysis for hospitality business
 Current and potential trend in hospitality industry
 Conclusion
 Rerefences

Introduction
PESTLE and SWOT analysis are conduct to identify the impact of
macro and micro environmental factors on business operations of
Intercontinental Hotel Group. It assist management in making an
effective decision for the betterment of an organisation in
competitive market world.

Pestle Analysis On Intercontinental
Group & Travelodge
Political factor- This factor is related with the government policies which are
commenced by the government. The rate of VAT in UK is constant since last
couple of year due to which hospitality industries are capable of operating its
business activities easily and smoothly. Government in UK has been facing global
pressure pressure so that all the regulations formed by WTO for hotels cab be
fulfilled.
Positive: Operating in UK will benefits the intercontinental hotel groups to
have stable policies and norms due to which employees will be able to
perform their work in a desired manner.

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Negative: If hotel chain will operates in region which is not politically
stable then they have to change their rules and strategies at continuous
basis due to which organisational productivity will reduce.
Example 2: In political factor, Trevelodge is facing number of issues and
problem just because of trade regulation which is being imposed on
hospitality sector. This has been creating unnecessary issue for the
organisation and because of they are unable to perform better with in the
market.

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Economic factor: These factors are concerned with interest rate, economic
cycle, savings rate, inflation rate, GDP and foreign exchange rate.
Intercontinental hotels are needed to acknowledge these aspects about a
country before expanding their businesses in that region.
Positive: It will be beneficial for the concerned hotels to operate in area
where government intervention will be low. This will secure the company
from extra taxes and custom duties (Tresidder, 2015).